SunSirs: With Both Supply and Demand Weak, the Seamless Tube Market Operated in a Weak and Stable Manner (December 8-12)

Price trend:

According to data from SunSirs, seamless tube prices experienced a slight decline last week. As of the end of the week, the price of 20#, 108*4.5 seamless tube was 4,062 RMB/ton, a decrease of 0.1% compared to the beginning of the week and a year-on-year decrease of 3%.

Regarding raw materials:

Last week, the seamless tube market prices remained generally stable, with some tube manufacturers making minor price adjustments. Specifically, the price of tube billets from Linyi Steel Investment was lowered by 10 RMB/ton today. The ex-factory price for 20# hot-rolled tube billets was 3,230-3,320 RMB/ton. Due to weakening futures prices and sluggish demand, downstream buyers were mostly adopting a wait-and-see approach.

As of December 12, the market continued to be constrained by weak supply and demand dynamics, exhibiting typical seasonal demand contraction characteristics. Inventory reduction was slow, making it difficult to effectively boost seamless tube prices. Most market participants were adopting a wait-and-see attitude, and market transactions were weak, with some instances of price reductions to move inventory. End-users were primarily purchasing only what they immediately need.

Last week, the national inventory of seamless tubes was 380,000 tons, a decrease of 8,000 tons compared to the previous week. Steel mill inventory was 730,000 tons, a decrease of 19,000 tons compared to the previous week.

Market outlook

Overall, the seamless tube market was exhibiting a "stable price, weak transaction" trend. The fundamental supply and demand dynamics remained weak, with declining costs and a slow demand season. Simultaneously, ferrous metal futures fluctuated and weakened throughout the week, which, while somewhat dampening market sentiment, had limited impact on the spot market. This, coupled with localized environmental policies supporting supply, maintained the market's weak and stable pattern. It is expected that seamless tube prices will continue to be weak and stable in the short term.

If you have any inquiries or purchasing needs, please feel free to contact SunSirs with support@sunsirs.com.